A Trust Fund Is to Be Established by a Single

question 174

Multiple Choice

A trust fund is to be established by a single payment so that at the end of 15 years,there will be $20,000 in the fund.If the fund earns interest at the rate of 8% compounded semiannually,how much should be deposited initially into the fund?

• A) $6166.38
• B) $6472.42
• C) $7014.27
• D) $7143.56
• E) $11,105.30

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Definitions:

Petty Cash

A small amount of cash on hand used for covering minor expenses.